Thailand revives $31 billion land bridge plan amid shipping disruption concerns

BANGKOK: Thailand is pushing ahead with a long-discussed Land Bridge project linking the Indian and Pacific oceans, with the government citing recent disruption in the Strait of Hormuz as a fresh reason to advance the proposal and seek foreign investment.

The Thai government said it is reviving the project across the country’s narrow southern peninsula after the latest problems in the Strait of Hormuz highlighted the vulnerability of major global shipping chokepoints, including the nearby Malacca Strait.

The plan had previously been taken up by an earlier administration, which drafted legislation for the project. However, the proposal lost momentum during a period of political instability. Public hearings, as well as environmental and health impact assessments, were not completed, and some local residents had also opposed the scheme.

Transport Minister Phiphat Ratchakitprakarn said over the weekend that a proposal is expected to go before the cabinet in June or July. He said the government would then look for investors for the project, which is estimated to cost 1 trillion baht, or $30.97 billion, with the investor search potentially beginning in the third quarter.

Alternative route to Malacca Strait

The Land Bridge is a decades-old proposal that would involve building two deep-sea ports — one in Ranong on the Andaman Sea and the other in Chumphon on the Gulf of Thailand. The two points would be connected by 90 kilometres, or 56 miles, of road and rail infrastructure, along with energy links such as pipelines.

According to the plan, the route would provide an alternative to the Malacca Strait, a 900-kilometre, or 550-mile, channel bordered by Indonesia, Thailand, Malaysia and Singapore. The waterway is the shortest maritime route linking East Asia with the Middle East and Europe.

Thai Prime Minister Anutin Charnvirakul discussed the proposal on Monday during a meeting with Singapore Defence Minister Chan Chun Sing. Singapore is a major regional investor and is located at the end of the Malacca Strait, through which more than 100,000 mostly commercial vessels passed last year.

Thai government spokesperson Rachada Dhanadirek said Chan showed interest in the proposal.

“He sees it as an economic opportunity for Thailand and for foreign investors, if the project can be successfully pushed forward”, Rachada said, referring to Chan.

The renewed Thai push comes after Indonesia’s finance minister last week drew attention by publicly discussing possible ways countries could levy tolls on ships using the Malacca Strait as a means of generating revenue. The minister later said that would not be possible, followed by several clarifications.

The Land Bridge is seen as a more practical option than the Kra Canal, another long-standing proposal to cut a shipping canal across southern Thailand. That idea has faced resistance because of environmental, financial and security concerns.

The Thai government is now seeking to move the Land Bridge plan back onto the policy agenda, with cabinet consideration expected in the coming weeks and efforts to attract investors likely to follow if the proposal is approved.